Many people choose to invest in property, as it can provide a substantial passive income. For those who own multiple properties, this income can build up, offering a significant return on investment. It’s therefore not surprising that so many workers are willing to give up the daily 9-5 and take a risk in this sector. However, it’s worth keeping in mind that property management can be expensive, difficult and time consuming. It can be very easy for an investment to fail and that could mean losing a life-changing amount of money. Therefore, it’s important to ascertain whether property management is suitable for you and if it is, how to go about managing a successful portfolio.
Legal
When managing property, there are very specific responsibilities which are expected from you. As a landlord, you have a duty of care for your tenants and many of these responsibilities are legal. However, the law is continually changing and being updated. Landlords must try to stay on top of legislation and make any relevant changes, when and if necessary. The consequences of not doing so could range from reputational damage to a costly legal battle.
You may find it helpful to join an online group aimed at landlords, as these can provide up to date information on the laws affecting those who manage property.
Maintenance
Property maintenance can be time consuming and expensive, particularly for those with multiple dwellings. However, regular servicing and maintenance checks can protect against much more expensive problems down the line. Whether this means something specific like routine boiler check-ups, or even just general property inspection. It’s better to deal with a small fault now, than having to complete more expensive repairs.
Similarly, when a tenant reports any sort of issue within the property, it’s important to tackle it as soon as possible. Ignoring the issue will not only alienate your tenants but could also lead to more lasting damage.
Admin
One of the less glamorous sides of property management is the admin work. However, it’s extremely important that landlord and managers keep on top of this admin. Before moving into the property, tenants will require background checks and reference checks. However, once securely in the property, the admin doesn’t stop there- safety checks, inventory and rent payments are continuous. It can be easy to let the admin work build up but this will lead to confusion, stress and could potentially affect your legal obligations.
Software
As we have established, managing a property portfolio can be a complex task. It’s for this reason why many landlords are relying on bespoke management software, which streamlines the entire process. There are many packages to choose from and each will offer their own unique benefits. However, the majority of these software programs aim to automate many of the processes involved with property management. Of course, it’s also extremely useful to have all of the relevant information on properties and tenants in one place. Overall, this software reduces some of the responsibility placed on the landlord and frees up valuable time for them to invest elsewhere.
Help
Some landlords will employ a third party to manage their properties- this could be an individual or specialised company. There are many advantages to going down this route, not only does this remove responsibility from yourself, it also frees up valuable time. Not to mention, these are experts who have a wealth of experience within this area, ensuring that you and your tenants are in good hands. Obviously, the downside to employing external help is that you will be charged for this but for many property owners, the service is worth the cost.
The skilled team at Salhan Accountants has a wealth of experience in offering friendly and reliable financial advice for all aspects related to property investment. To find out more about everything they have to offer, don’t hesitate to visit their website.
